Karanataka State Financial Corporation1

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE
M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE
INDUSTRY PROFILE
INTRODUCTION ABOUT FINANCIAL INSTITUTIONS:
The financial institutions are also known as Development Banks. Development banks are those financial institutions, which provide term finance, promote entrepreneur, and enhance organizational effectiveness and upgrade know-how and dohow. They provide either loan or equity capital or both, as also advisory, promotional and entrepreneurial services. The first development bank was the Industrial Development Bank of Japan established in 1902. Initially, it provided ship mortgage loans. After 1927, it started financing small-scale industries. But it was after the Second World War, it started functioning as a development bank in the modern sense of the term. Development Banks were also started in a number of developed and developing countries in the post-war era. The Asian Development Bank came into existence in 1967. The first development bank in India was the Industrial Finance Corporation (IFC) established in 1946.
DEVELOPMENT BANK IN INDIA:

There are three types of development banks in India. Firstly, there are Development Banks for agriculture at local, state and national level. They are Primary Land Development Banks, state / Central Land Development Banks and NABARD. Secondly, there are Development Banks for industry at the National and State level. At the national level are included Industrial Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Small Industries Development Bank of India (SIDBI), Industrial Reconstruction Bank of India (IRBI), Risk Capital and Technology Finance Corporation (RCTFC), Technology Development and Information Company of India (TDICI), Shipping Credit and Investment Corporation of India (SCICI) and Tourism Finance Corporation of India (TFCI). At the same level are

State Financial Corporations (SFCs) and State Industrial Development Corporations (SIDCI). Thirdly, there is the Export-Import (EXIM) Bank of India for the foreign sector.
STATE FINANCIAL CORPORATION (SFCs)

State Financial Corporations are the state level development banks for the development of small and medium scale industries in 18 states of India. They aim at bringing about balanced regional development by wider dispersal of industries, promoting greater investment and generating larger employment opportunities. Besides their paid-up capital, State Financial Corporations augment their funds by borrowings from Governments, RBI, SIDBI and Banks and by way of Bonds / Debentures, by accepting Deposits and sale of Investment in shares and debentures of industrial concerns.
FUNCTIONS: State Financial Corporations perform the following functions:

1) They provide financial assistance to industries by way of term loans, direct subscription to equity / debentures, discounting of bills of exchange and providing guarantees. 2) They meet the term loan requirement of small and medium scale industries for acquisition of fixed assets like land, building, machinery and equipment. 3) They provide loans for setting up new industrial units as well as for expansion and modernization of the existing units. 4) They also promote the development of medium and small-scale industries in backward areas of the country. 5) Under the special capital scheme, SFCs provide equity type support up to Rs.4 lakhs on short terms to entrepreneurs for bridging the gap in equity or promoters contribution, entrepreneurs with viable projects but lacking adequate own funds are assisted under the scheme.

6) SFCs operate a number of schemes on behalf of the SIDBI. These include schemes for women entrepreneurs, modernization scheme, equipment finance scheme, schemes for hospitals and nursing homes, scheme for ex-servicemen, single window scheme and special capital/seed capital schemes, etc.
NUMBER OF STATE FINANCIAL CORPORATIONS:

At present there are 18 SFCs in the country, 17 of which were set up under the SFCs Act 1951.Tamil Nadu Industrial Investment Corporation Ltd. Set up in 1949 under the Companies Act as Madras Industrial Investment Corporation also functions as a fullfledged SFC.
1) 2) 3) 4) 5) 6) 7 8) 9) 10) 11) 12) 13) 14) 15) 16)
Andhra Pradesh State Financial Corporation Assam Financial Corporation Bihar State Financial Corporation Delhi Financial Corporation Gujarat State Financial Corporation Haryana Financial Corporation Himachal Pradesh Financial Corporations Jammu & Kashmir State Financial Corporation
Karnataka State Financial Corporation

Kerala Financial Corporation Madhya Pradesh Financial Corporation Maharashtra State Financial Corporation Orissa State Financial Corporation Punjab Financial Corporation Rajasthan Financial Corporation Tamil Nadu Industrial Investment Corporation Ltd.
4
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE 17) Uttar Pradesh Financial Corporation 18) West Bengal Financial Corporation
Introduction:-
COMPANY PROFILE:-
Karnataka state financial corporation is a state level financial institution established by the State Government. Today, while the state economy is making rapid strides in the global market, KSFC is moving in tandem. As a pioneering and responsive financial institution, KSFC is fine tuned to fulfill the plans and aspirations of entrepreneurs by extending all possible assistance. Amendments to the State Financial Corporation Act provide for wide ranging scope of assistance and operational flexibility. Keeping this in view, KSFC has reengineered itself to ensure utmost customer satisfaction with new energy, thrust and speed. In the 47 year of existence, KSFC has contributed most significantly for the growth of Small-Scale Industries, backward area development and promotion of first generation entrepreneurs. Its achievement in these areas is unparalleled. KSFC, as ISO 9001:2000 certified organization is proud to have played a major role in the industrial development of the state. It is also the proud privilege of KSFC to have assisted many industries that are internationally recognized like the INFOSYS, BIOCON, etc.
Origin and Growth:KSFC was established by the Karnataka State Government in the year 1959 under State Financial Corporation Act 1951 for extending the financial assistance for setting up of tiny, small and medium scale industrial units in the state. Since then it has been working as a regional industrial development Bank of Karnataka. KSFC has a decentralized system of working. Term loan up to Rs.50.00 lakhs are sanctioned at branch offices and loans over Rs.50.00 lakhs are processed and sanctioned at the Head office.

KSFC has branches all over the state. Each district has a branch office. In all, KSFC has 7 zonal offices, 3 supers A grade branch offices, 12 A grade branch offices and 14 B grade branch offices. KSFC extends term loans to new units up to Rs.500.00 lakhs for corporate bodies and registered co-operative societies. Term loans up to a maximum of Rs.200.00 lakhs are sanctioned to propriety, partnership and Joint Hindu Family concerns. KSFC gives term loans jointly with Karnataka State Industrial Investment Development Corporation (KSIIDC) and commercial banks for projects up to RS.20.00 Crore.
SCOPE OF KSFC:The scope of operation of Karnataka State Financial Corporation is confined essentially to small and medium scale enterprises and it is constrained from granting loans to concerns whose paid up capital and reserves together exceeds Rs.20 crore. Their aggregate contingent liabilities arising from guarantee and under writing arrangements should not ordinarily exceed twice their paid up capital and reserves, which can extend up to Rs.12 Crores with the prior approval of the Government. Moreover, KSFC holding companys share capital should not exceed 30% of the subscribed capital of their company or 10% of its own paid capital and reserves whichever is less. It is also prohibited from financing a concern in which its directors have interest. KSFC is also authorized to act as the agent of Government both at central and state level, with any financial institutions like Industrial Development Bank of India (IDBI), Industrial Financial Corporation of India (IFCI) etc, in matters connected with grant of advances or subscription.
CORPORATE MISSION:-

KSFCs corporate plan strategy for resource raising and creating competitive advantage revolves around an organization mission is based on a clear identification and perception of KSFCs core competencies. They are: 1) 2) 3) 4) Reach and cover the entire state of Karnataka. Knowledge of suitability for each region in the state in terms of infrastructure and natural resources, existing level of industrialization and entrepreneurship. Building a body of multi disciplinary professionals. Specialization in the appraisal, monitoring and recovery of loans of SSI/MSI and other new fund based and fee based activities. A deep routed commitment to the development of entrepreneurs and SSIs.
MISSION: To be a premier, self sustained financial institution for catalyzing, creating and
sustaining viable investment in the small scale and medium sector of industry and services and the financial sector in the state of Karnataka.
VISION:Vision of KSFC is to be a premier financial institution in the country, by providing effective and efficient service to all sectors of people under one roof. Its vision is ALL FOR ONE AND ONE FOR ALL.
GOAL:OVERALL DEVELOPMENT OF SMALL SCALE AND MEDIUM SCALE INDUSTRIES
QUALITY POLICY:M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE 8

KSFC endeavors to create satisfied customers through adequate and timely financial assistance and guidance. This aim is achieved through professional management and teamwork.
QUALITY OBJECTIVES:
1) To ensure satisfaction through teamwork and professional management. 2) To extend effective guidance through entrepreneurs for successful accomplishments of their business. 3) To provide good quality of service on a continued basis to the satisfaction of the customer. 4) To attain specified level of performance every year and to ensure compliance with statutory and regularly requirements. 5) To encourage everyone in the organization to upgrade and enhance their skill and knowledge with appropriate training for improving quality of service to the entrepreneur.
PURPOSE OF ASSISTANCE:The corporation extends financial assistance for acquiring fixed assets like land, building, plant and machinery and miscellaneous assets required for the project. However, the corporation also extends working capital under Single Window Scheme to new units and corporate loan to the existing good units to meet short-term gap in working capitals requirements.
LIMIT OF ACCCOMODATION:The following are the maximum limits of loans that could be availed by entrepreneurs: Category 01 Proprietary/partnership 02 - Corporate bodies (private/public limited) & registered Co-operative societies Rs.500 lakhs 9 Maximum loan Rs.200 lakhs
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE Note:

In respect of both the categories mentioned above, the minimum loan that could be sanctioned by the Corporation is Rs.5.00 lakhs. Loan below Rs.5.00 lakhs is not sanctioned by the Corporation excepting transport loans. In respect of existing units (category 02 only) operating successfully, maximum limit can be extended to Rs.1000.00 lakhs depending on the merits of the case with prior approval of the Small Industries Development Bank of India (SIDBI) In respect of category 02, the financial assistance can be granted provided the paid- up capital and free reserves does not exceed Rs.20.00 crore. If the requirement of funds for a project is substantial & cannot be extended by the Corporation singly, then the requirement of loan of such projects can be made in consortium with Karnataka State Industrial Investment Development Corporation (KSIIDC) / BANKS.
LENDING POLICY OF THE CORPORATION:The Corporation formulates lending policy at the beginning of the each year. The loans are given based on the lending policy of the Corporation. The lending policy covers various aspects like exposure to the group, thrust sectors, sectors in the negative list (loans are not granted to such sectors). The industrial policy of the state and central government is taken into account while formulating the lending policy of the Corporation.
SCHEMES:Today, the Karnataka state financial corporation is one of the leading State Financial Corporations in the country. With a branch network of 29 offices spread
10

throughout the state of Karnataka. KSFC is a fine tuned, well known organization to meet the demanding challenges of entrepreneurs, both big and small. Though, the performance indicators of the corporation have shown a small slump in the recent years, it is more on account of the bearish forces of the Indian economy. However with the unprecedented growth in the services and the IT sectors, and the state of Karnataka advantageously placed in these sectors, the corporation is making good headway and has potential for a steady growth. KSFC has evolved loan schemes for extending financial assistance to suit almost all kinds of industrialist's entrepreneurs and technocrats. KSFC has also evolved loan schemes for extending financial assistance to service sectors like Hotel and Tourism related Industry, Industrial Estates, Hospitals, Nursing homes etc.
SERVICE NETWORK:KSFC services the nook and corner of Karnataka with its extensive network of 7 Zonal offices, 3 super A Grade Branch offices, 12 A Grade Branch offices and 14 B Grade Branch offices with an empowered and decentralized administrative system.
1) Bangalore Rural Zone 2) Mysore 3) Mangalore 4) Gulbarga
ZONAL OFFICES:
5) Belgaum 6) Davangere 7) Dharwad
SUPER A GRADE BRANCH OFFICES
1) Bangalore M.G. Road Branch 2) Bangalore Jayanagar Branch 3) Bangalore Rajajinagar Branch A GRADE BRANCH OFFICES: 7) Mangalore 8) Hassan 9) Mandya 10) Kolar 11
1) Bangalore Rural 2) Belgaum 3) Dharwad 4) Mysore

5) Gulbarga 6) Tumkur 11) Bellary 12) Udupi
1) Shimoga 3) Bijapur 4) Raichur 5) Bidar 6) Karwar
B GRADE BRANCH OFFICES:

9) Haveri
8) Madikeri
2) Chitradurga
10) Bagalkot 11) Davangere 12) Gadag 13) Chamarajnagar 14) Koppal
7) Chikmagalur
AREA OF OPERTION:The area of operation covers the entire state of Karnataka. KSFC has branches in all the district headquarters. The industrial units / service sectors established or to be established within the state only are eligible for assistance. The branch offices of the corporation are adequately delegated with powers of sanction and disbursements. Requirements of financial assistance up to Rs.50.00 lakhs are handled by the concerned branch office. If the requirement of loan is more than Rs.50.00 lakhs, entrepreneurs will have to approach the head office. The schemes formulation by the corporation: Bridge loan against state subsidy (highly restricted ) Acquisition of private vehicles. Corporate loans Equipments Lease Financial and Hire Purchase (ELF & HP) Merchant Banking and Financial services Rental Discounting scheme 12

Acquisition of Existing Assets/ Enterprises Financial Assistance to Entertainment Industry
SERVICE NETWORK IN KARNATAKA:
13
PEOPLE : The prime asset of KSFC
14

KSFC has professional team of experts drawn from various disciplines lead by illustrious leadership of senior IAS officer. The personnel of KSFC are top rated Managers, Engineers, Financial Analysts, Market Researchers, Statisticians, Economists and Information Technologists. It is this team of professional wizards, which is the backbone of this mighty organization.
FINANCIAL SERVICES:KSFC is a financial super market. It extends all types of financial assistance in the form of long-term loans, short term loans (in the form of corporate loans), Lease finance, Hire purchase finance, Merchant Banking and financial services etc. KSFCs assistance covers almost all types of industrial and service sectors. KSFC is a category one merchant banker as approved by Securities and Exchange Board of India (SEBI). The Merchant Banking Division takes up management of public issues, DPG, Syndication of loans, Bills Discounting etc. The other activities are subscription to the non-convertible debentures and factoring services.
AWARDS AND RECOGNITION

ISO CERTIFICATION:
During the year, the corporation obtained the ISO 9001:2000 recertifications to the revised standards from M/s Bureau of Indian standards for a further period of 3 years. Plans are on the avail to extend ISO certification to branch offices in a phased manner. In the first phase, super A grade branch offices are proposed to be taken up in the ensuring year.
INSURANCE ACTIVITY:
15

The corporation has taken corporate agency with IFFCO-TOKIO General Insurance limited for distribution of Non- life insurance products. IFFCO-TOKIO has awarded KSFC the certification of excellence for outstanding performances as a service provider in the year 2004-05. The corporation insured assets in respect of 4,831 cases and mobilized a premium of Rs.166.39 lakh under general insurance up to March 2007.
BUDGETARY PROVISION:
The Government of Karnataka has consented and committed to fund simple
interest in respect of small loans upto Rs. 10.00 lakh which have become NonPerforming Assets as on 01-04-2006. A budgetary provision of Rs.54.00 crore has been made for the financial year 2007-08. Provision regarding NPA is considered after taking credit for this amount.
ACTIVITIES OF KSFC:
KSFC PARTICIPATION EXHIBITION IN VISION 2006 INDUSTRIAL
Small Industries Service Institute (SISI) Bangalore, Indian Lighting Engineers (ISLE) Bangalore and Karnataka Small Scale Industries Associations (KASSIA) Bangalore had jointly organized VISION 2006 Lighting & Allied Electrical Products Industrial Exhibition cum Vendor Development Programme at SISI Campus, Rajajinagar Industrial Estate. Bangalore from 9th to 11th December 2005. The objective of the programme was to showcase the potential of small and medium enterprises and focus the needs of large-scale industries, government departments, public sector undertakings etc for lighting and allied electrical products, automobile and solar lightings etc.
16

About 20 industries engaged in the manufacturing /trading of lighting and allied electrical products and solar lighting participated in the exhibitions. Karnataka State financial Corporation took up a stall in the exhibition. KSFC participated in the exhibition and actively propagated its products and services.
PARTICIPATION IN THE 5 TH INTERNATIONAL RICE TECH EXPO

RICE TECH EXPO- Bangalore, the 5th International Exhibition and conference on Rice Processing Technology was organized by Shiny Trade Expositions (Rice mill reporter publications Group, Vijay Wada) at Palace Grounds, Bangalore from 9th to 11th December 2005.The main theme of the exhibition was to create awareness on new processing and marketing strategies among the rice industry entrepreneurs. More than 60 industries are engaged in the manufacture of rice milling machinery. Karnataka State Financial Corporation participated in the exhibition and actively exhibited its products and services. There were large number of visitors from Karnataka and neighboring States.
WORKSHOP ON ACCESSS TO FINANCE FOR WOMEN ENTERPRENEURS:

AWAKE & FICCI Ladies Organization have jointly organized a two day Workshop on Access to finance for women entrepreneurs at Hotel Atria, Bangalore on 2nd and 3rd December 2005. Nearly 70 entrepreneurs and 34 executives from different banks and financial institutions participated in the workshop. The workshop was organized with the objectives; To improve access to finance for women entrepreneurs 17

Awareness on the various schemes and policies. To bring about better understanding between bankers and women entrepreneurs. In this workshop Mr. Ratna Ravikumar represented the KSFC
Seminar on Development of Women Entrepreneurs in the State of Karnataka .

SISI (Small Industries Service Institute), Bangalore in association with SIDBI and AWAKE has organized a seminar on Development of Women Entrepreneurs in Karnataka at the SISI campus on 3-1-2006. Besides members of AWAKE and other women entrepreneurs the meet was attended by representatives of Government Departments and agencies like Industries and Commerce, Women and Child welfare, KCTU, TECSOK, CEDOK, NABARD, KSFC,KVIB, KVIC etc. Sri. S. Prabhu, Asst. General Manager (BD & CR) represented KSFC in the meet and addressed the participants.
18
19
SERVICES OFFERED BY KSFC

EQUIPMENT LEASE FINANCE :
Industrial units working profitably can avail services of plant and machinery on lease without making investment or incurring debt obligation and become more competitive and efficient. The minimum assistance under the service is Rs. 5 lakhs. The applying unit should be in production for the last 2 years, earning profits and regular in repayment to financial institutions.
HIRE PURCHASE :
This scheme provides for a fast, easy alternative to ready cash. Industrial concerns in commercial production for 2 years and earned profits and are regular in their repayments to financial institutions can avail the assistance.
MERCHANT BANKING SERVICES:

KSFC has been approved as a category 1 merchant banker by the Security Exchange Board of India (SEBI) and takes up management of public issues, under writing of shares, deferred payment guarantees project report preparations, syndication of loans, pre-issue appraisals, opening foreign letter of credit.
MUTUAL FUND ACTIVITIES:

During the year of 2006-07 the Corporation entered into MoU (Memorandum of Understanding) with UTI for marketing of Mutual Fund products of UTI. Though, this activity was started in the last quarter of 2006-07, mutual fund products of Rs. 138.49 lakh were marketed.
20
CONSULTANCY SERVICES:
The Corporation is also hopeful of earning sizeable income by undertaking the consultancy services of various works of Municipal Corporations like BBMP, HDFC, MMP, etc.
DIFFERENT TYPES OF INDUSTRIES COVERED BY KSFC:

Basic Metal Beverages Chemical and Chemical products Coal Electric machinery Electric, gas and steam Fishing Food excluding Beverages Footwear and other wearing apparel and made up textile goods Furniture and Fixtures Hotels Houseboats Industrial Estates Leather, leather and furniture products Machinery excluding electric machinery Manufacture of textiles Transport
21
Various Sectors Covered by KSFC:

Public Sector Partnership Firms Co-operative Sector Private Sector Joint Hindu Family Proprietary Concern
From the above, its clear that a very important role is played by KSFC. Similar to the commercial banks, if the State Financial Corporations too had oriented and limited themselves to bigger and profitable undertaking established by the second and third generation entrepreneurs, then the bulk of the Small and Medium Enterprises (SME) segment had to fend for itself with deleterious economic and social consequence.
SCHEMES OF THE CORPORATION:

General scheme:
The corporation extends financial assistance for new enterprise to establish SSIs / MSIs/ service units for expansion, modernization, diversification etc., by the existing units to meet a part of cost of land, building, plant and machinery and other fixed assets.
22
National Equity Fund Scheme (NEF S):

This scheme provides equity type of assistance (soft seed capital) upto RS.10.00 lakhs to small entrepreneurs for existing and new projects in the tiny, small scale, service sectors and for rehabilitation of potentially viable sick SSI units. The ceiling on project cost is Rs.50.00 lakhs and the promoter's contribution is 10% of the project cost (including working capital margin). While the equity type of assistance (SSC) carries interest at 5% p.a. the term loan carries normal rate of interest. A net interest rate works out to 9.69% for loans below Rs.25 lakhs and 10.35% for loans above Rs.25 lakhs.
Mahila Udyam Nidihi Scheme (MUNS):

This scheme is meant for extending financial assistance for first generation women entrepreneurs to set up SSI units. The scheme provides equity type assistance (soft seed capital) along with term loan for existing and new projects. The ceiling on the project cost is Rs.10 lakhs and the minimum equity assistances Rs.2.50 lakhs, which attracts 1% service charge only p.m. The term loan component carries normal rate of interest. The women entrepreneurs who seek assistance under this scheme should possess managerial and necessary skill to run the unit and shall be the chief promoters of the proposed unit.
Scheme for Technology Upgradation for Textile Industries (TUFs):

The objective of the scheme is to provide encouragement for Textile Industries (including cotton ginning pressing units) in the small scale industrial sector for technology upgrading and to modernize their production facilities. The scheme covers projects costing Rs.5 lakhs to Rs. 50 lakhs. New and existing units are eligible for this
23

assistance. The prevailing of interest as applicable to SSI is charged. The present lending rates are 11.00% p.a. and 11.50% p.a. for loans below Rs. 25.00 lakh and above Rs.25.00 lakh respectively.
Credit Linked Capital Subsidy Scheme (CLCSS):

The objective of scheme is to facilitate technology upgradation of SSI units or SSI units graduating to MSI in specified products / sub-sectors by providing 15% with maximum subsidy amount of Rs.15.00 lakhs and investment limit to Rs.100 lakhs on the loan given for machinery. Existing SSI units registered with the State Directorate of Industries who upgrade with the state of art technology, with or without expansion are eligible.
Technology Development Fund Scheme (TDMF):
and
Modernization
To encourage small and medium scale entrepreneurs and to upgrade the technology and modernise their existing production facilities the Government of Karnataka has come up with an interest subsidy scheme. The scheme is applicable to the units financed by KSFC and KSSIIDC only. Existing units who are in operation for at least 3 years and who are not default to institutions/ banks in payment. Units graduating from SSI to MSI sector and service sector are also eligible. For availing loan under TDMF, the project cost shall not exceed Rs.100.00 lakhs. The scheme envisages reimbursement of 4% interest p.a. as a interest subsidy on the term loan availed from the Government of Karnataka.
Single Window Scheme (SWS):

This loan scheme is for providing assistance to new tiny and small units whose project cost (excluding working capital margin) does not exceed Rs.50.00 lakhs and the total working capital requirement at the normal level of operation is up to Rs.20.00 lakhs. M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE 24

Term loan on fixed assets and term for working capital is sanctioned based on the debt equity ratio of 2:1 for loan above Rs.10.00 lakhs and 3:1 for loan up to Rs.10.00 lakhs.
Corporate Loan Scheme (SLS):

The objective of the scheme is to extend short term loans to the existing successful units who require urgent working capital funds either to meet the gap in the working capital requirement or funds required for developing / expanding new market and opening Letter of Credit for purchase of new equipment till term loan is sanctioned and released. The repayment period does not exceed 30 month including moratorium period of 6 months. The corporate loan is restricted normally to the manufacturing sector.
Rental Discounting Scheme:

The objective of the scheme is to provide financial assistance on the strength of future rental to be earned by non residential proportion located within the city and municipality limits of Bangalore, Mangalore, Hubli- Dharwad, Gulbarga, Shimoga Bhadravathi, Mysore and Belgum subject to gross rent earning of not less than Rs. 25000/- per month.
Foreign Letter of Credit (FLC):

KSFC has been operating the scheme of opening Foreign Letter of Credit for importing the capital goods through commercial bank exclusively for our borrowers since 1995. The scheme is operated in the Hire Purchase and Financial Service department of head office.
INSURANCE :
KSFC has entered into a strategic alliance with IFFCO-TOKIO General Insurance Company to market the Non Life Insurance Products. This would enable the clients of KSFC to have credit and the insurance under one roof. The premium tariffs 25

applicable are same as the other insurance companies and at no extra service charges. An exclusive Insurance Cell with well-trained staff is in operation at Head office. The details of the general perils covered are: Fire, Earth quake, Burglary, Machinery breakdown Marine, Household insurance, Cash safe / transit Fidelity guarantee, Bankers indemnity, Vehicle insurance Medical insurance, Personal accident cover Electronic equipment, Trade and office
Life Insurance Corporation:

An MoU (Memorandum of Understanding) was signed with Life Insurance Corporation of India in March 2007 for marketing of LIC products.
INFRASTRUCTURE DEVELOPMENT ACTIVITY:

Infrastructure is an integral part of the services sector and plays a crucial role in the industrial development. The services sector has emerged as one of the major contributors to the countrys GDP growth rate. Inadequacy in infrastructure stunts economic development. There is now a wide spread consensus that exclusive dependence on government for provision of all infrastructure services is not feasible and private public participation is essential for realising optimal outcomes in the sector. Recognizing this, the Corporation has taken up infrastructure development projects with public / private participation. The Corporations initial focus is to identify valuable vacant lands in the prime localities in and around the Bangalore city, owned by various government departments / agencies / registered societies / trusts, etc., including SEZs and explore joint development ventures.
26
27
ORGANIZATIONAL STRUCTURE:
KSFC has extensive network office encompassing entire Karnataka. KSFC serves every nook and corner of Karnataka with its network of 7 zonal offices, 3 super A grade branch offices, 12 A grade branch offices and 14 B grade branch offices with an empowered and decentralized administrative system. It is the only term lending financial institution in the Karnataka with such a widespread network. Board of Directors of KSFC is headed by the Chairman and the Managing Director is appointed by state Government. The head offices of the organization have divisional structures. It has 15 divisions. To assist Managing Director, KSFC has 2 executive director (Finance and Operation) and 6 General Managers-Corporate planning, Credits, Recovery, Zonal offices, Administration and Asset Reconstruction. At the senior management level DGMs, AGMs with a legal Advisor and 2 Additional Legal Advisor are functioning. Managers and Deputy Managers are executing the policies at the middle level. Zonal offices and Super A grade branches are headed by DGMs, grade branches are headed by AGMs. Managers head all B grade branches.
ABBREVIATIONS:
ED EA MD GM Executive Director Executive Assistant Managing Director General Manager 28

DGM AGM ZM BM Deputy General Manager Assistant General Manager Zonal Manager Branch Manager
ORGANIZATION STRUCTURE OF THE COMPANY:

Managing Director
Executive Director (Finance) (
Executive Director (Operation) General Manager (Cr) GM (AR)
DGM Internal Audit
GM (Admins..) Manager Personnel Manager Disciplinary Manager Administration Manager Construction
GM (Zones)
DGM (HP& Le)
AGM Bangalore AGM Mysore AGM Dharwad AGM Raichur
DGM (Zones) Zonal Managers AGM (Zones) AGM HP/ Le
DGM Credit AGM Credit
DGM (AR) AGM (AR) GM (R)
HP&Le-Hire Purchase& Leasing IT - Manager Information Manager Technology AGM(R) MIS Management ISO Cell Information PGC Branch Service Managers AGM AR - Asset Reconstruction DGM AGM IT BD & CR Legal BD&CR-Business Development DGM & Credit Research (Controller) AGM EG Entrepreneurial Guidance Library AGM MIS Records WEGC- Women Entrepreneurial (EG) Guidance Cell AGM AGM (Treasury) SUMD- Sick Units/ Monitoring DGM WEGC Legal Department IDD R Recovery DGM 29 AGM PGC- Public Grievances Cell M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE FSD SUMD FSD-Financial Service Department IDD-Infrastructure Development Dept
GM Corporate Plan BD & CR
DGM
DGM (R)
SHARE HOLDING PATTERN

SL . N O 1. PARTICULARS NO.OF PERCENTA SHARES GE (in Units) OF HOLDING
51,73,000 5,37,388 11,27,500 22,92,692 6,27,500 16,090 7,900 2,475 69.88%
STATE GOVERNMENT U/S 4(3) (a) U/S 4(5) Special capital issued U/S 4A IDBI: U/S 4(3) (a) Special capital issued U/S 4A Insurance Companies Investment Trusts, Other Financial Institutions. U/S 4(3) (c) Public Sector Banks U/S 4(3) (c) Other Parties. U/S 4(3) (c)
2.
29.84%
3.
0.16% 0.08% 0.03%
4. 5.
30
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE TOTAL (All Shares have cost of Rs. 100 each) 97,84,545 100.00
BOARD OF DIRECTORS:Sl
No
Name of the Directors
Period From To
08-04-2007
Under section of SFCs Act-2000

10(a) 10(f) 10(a)
1 Sri.N.Gokulram,IAS Chairman 2 a) Sri.V.Umesh,IAS Managing Director b) Sri.V.Umesh,IAS, Chairman & Managing Director Sri.M.R.Kamble,IAS Sri.Mohamed Sanaulla, IAS Sri .Rajakumar Khatri,IAS Sri.O.S.Vinod Sri.Ramesh.G.Dharmaji Smt.Bhama Krishnamurthy
21.12.2005
23.06.2006 09.04.2007
08.04.2007
3 4 5 6
21.04.2007 09.11.2005 16.08.2006 15.08.2006
10(a) 10(b)
10.10.2005 17.05.2006 10.02.2006
16.05.2006
10(c) 10(c)
31
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE 7 8 9 Sri.R.K.Abrol Sri.H.Suresh Prabhu Sri.P.K.Gupta Sri.S.R.Hanchinamani Sri.S.Nagaraju
24.11.2003 11.10.2006 10.10.2006
10(d)
05.07.2004 31.05.2007
30.05.2007
10(d)
15.05.2006
10(e) 10(e) 10(e) 10(e)

22.06.2006
10 Sri.G.S.Doreswamaiah 11 Sri.S.Ananthan Sri.Nataraj.V.Angadi 12 Sri. B. R. Jayaramaraje Urs, IAS, MD
24.11.2003 26.11.2005 27.03.2007 05.01.2005
10(f)
FUNCTIONAL DEPARMENTS OF KSFC

ENTREPRENEUR GUIDANCE CELL:
The function of the department is to guide the entrepreneur regarding matters like business opportunities, different schemes available, and procedure to be followed to get the loan, etc. This is the department through which new client come in contact with Karnataka State Finance Corporation.
PERSONNEL DEPARTMENT:
This department is in charge of recruitment, promotion, job rotation, transfer of employees, discipline, welfare and industrial relations and pay rolls. In addition, the department has a human resources department cell, which carries out training and development work.
LEGAL DEPARTMENT:
32

This department attends to all the legal matters affecting the interest of the corporations. The basic function of this department is to appraise the project legally which the entrepreneurs submit for getting the loan.
SICK AND MONITORING CELL:

The cell, which has been formed for rehabilitation of potentially viable sick units, conduct in depth studies regarding cases referred and assess the eligibility for rehabilitation assistance,
BUSINESS DEVELOPMENT RESEARCH DEPARTMENT:
AND
CREDIT
This department conducts research based on several factors and helps the management to take decisions. The following are few activities: Preparation of district profiles with substantial growth potential among the existing port folio. Analysis of high default schemes of KSFC and suggest improvement for the same. Evaluation of different scheme of KSFC and suggest changes if necessary. Publishing the KFSC news letters KSFC NEWS, MAHITI.
HIRE PURCHASE AND LEASING DEPARTMENT:

This department is incharge of leasing and hire purchase activities of corporation. This department was started with the introduction of the equipment of leasing finance scheme. KSFC is the first SFC to start this scheme.
33
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE MERCHANT BANKING DEPARTMENT:

The activities of this department are broadly categorized into fund based and non fund based services like deferred payment guarantees, public issues, under writing of shares, project report preparation, syndication of loans, bills discounting etc., are carried on.
TREASURY DEPARTMENT:
Treasury Department is given important from these recent years onwards because of the new challenges faced by KSFC in mobilizing its funds in the era of liberalization. The main function of treasury department is estimation of funds for lower possible cost.
CREDIT DEPARTMENT:
The main function of the credit department are appraising the projects, disbursement of funds and monitoring progress during the implementation of the project and to keep check on cost overruns and to ensure that funds are utilized for the purpose intended.
RECOVERY DEPARTMENT :
Recovery of loans sanctioned by the corporation and all other related functions like rescheduling of loan, effective changes in management of assisted companies, effective take over of default in units and insisting recovery proceedings are the main functions of recovery department.
MANAGEMENT DEPATMENT:
INFORMATION
SYSTEMS
This department is solely responsible for providing up-to-date statistical information of all the branches, departments etc., required by the management. M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE 34
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE INFORMATION TECHNOLOY DEPARTMENT:

This department was formed to computerize all the records and documents of KSFC with large-scale computerization. The corporation aims to function as a paperless office. This department is incharge of developing and managing the Letter Of Credit (LOC) etc.,
ASSET RECONSTRUCTION DEPARTMENT:

The asset reconstruction department at the head office is formed to review the chronic section 29 cases, DC referred cases and suit filed cases. This department verifies all the cases under review and occupies defaulting units and takes steps to recover the loan by step to step by selling the units.
APPRAISAL, DISBURSEMENT AND MONITORING DEPARTMENT:

The main functions of this department are to appraise the projects, disbursement of funds to the loans and to monitor progress during the implementation of the project and to keep a check on cost over runs and to ensure that funds are utilized for the purpose intended.
FINANCE AND ACCOUNTS DEPARTMENT:

This department is responsible for maintaining various accounts, ledger, cashbook and other books of accounts, income tax filling of statutory returns and statements.
INTERNAL AUDIT DEPARTMENT:

Auditing of books of accounts, verifying title deeds of properties offered as securities, business adhered to follow up for compliance of observations/recommendations made in reports of Statutory Authority and SIDBIs inspection report will be verified by this department. M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE 35
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE INFRASRUCTURE DEPARTMENT:
DEVELOPMENT
This department has started from this year. It is a separate and fully operational department. The department has already initiated realizable joint venture projects like IT Park, the Shopping Mall, Commercial Complex, or SEZ etc. for implementation in the near future.
FINANCIAL SERVICES DEPARTMENT:

This department has also started from this year. In order to augment income generation, the corporation initiated several measures directed towards fee-based activities. As part of restructuring, fee based activities like stamp vending, marketing of Life and General Insurance products, marketing of UTI mutual fund products, etc have been taken up by this department.
OBJECTIVES OF KSFC:
The corporation has been established with the basic objective of promoting industrial development in Karnataka. The KSFC was desired to particularly emphasis to specialized institution government. To provide financial assistance in the form of term loans to tiny and small scale industries, ancillary industries and medium scale industries in Karnataka. To encourage dispersal of industries to the backward areas to maintain balanced growth of industries. To provide equipment leasing, Hire Purchase, working capital and assistance to Research & Development activities.
36

To identify entrepreneurs throughout the state. To provide enterprise development programs to women engineering and technical professionals and agriculturists. To conduct district level industrial seminars. To provide special assistance to tiny and small scale industries. To identify new projects and help local people to set up industries. To develop data bank on industrial units.
37
ACTIVITES OF KSFC
Assistance to Hotels / Restaurants:
Medium and star category standard hotels proposed in state capital, district and taluk head quarters and important tourist centers within the state are eligible for financial assistance. The existing hotels going in for expansion/renovation are eligible for assistance. The hotel should have boarding, lodging and restaurant facilities and building plans approved by the local authorities. Hotels proposed as per the specification of tourism department, government of Karnataka are eligible for incentives as per the tourism policy of state/central governments. Mobile canteens/catering units are also considered for assistance subject to eligible and providing adequate collateral security as per the prevailing lending policy.
38
Assistance to the Doctors /Hospitals /Nursing Homes :

Hospitals and nursing homes are eligible for financial assistance from KSFC
must be backed by expert services of at least one postgraduate doctor. Assistance is available for acquiring land, building and equipments for diagnosis monitoring and therapeutic use and air conditions (for operation theatres and intensive care units) ambulance etc. Assistance is also extended to acquire ready built shop or for construction of medical stores subject to conditions. Medical practitioners with relevant qualifications in general medicine, dentistry, radiology etc are eligible for assistance for acquiring C.T scanners, X-rays, endoscope and other electronic medical equipments required by medical practitioners and hospitals. Medical professionals having Bachelors degree in and branch of medicine from recognized university are eligible for financial assistance for setting up Clinics.
Assistance to Construction Infrastructure Projects:
activities
and
Commercial complexes are an important infrastructure for the growth of Small and Medium Enterprise and service units, marketing outlets and for small business. Assistance under the scheme is provided for construction of building, Interior decoration, air conditioning, lift and communication facilities etc. The commercial complexes constructed can be either leased or sold on out right basis with the prior approval of the corporation. Residential apartments/group housing, industrial estates, IT parks, training institutions, godown, warehouses and development of layouts are provided financial assistance. With a view to facilitate the development of infrastructure financial assistance is also provided for establishing infrastructure projects like roads, flyovers, bridges etc.
Assistance to Tourism related activities:
39

The corporation provides financial assistance for tourism related activities like development of amusement parks, setting up of conventional/cultural centers, restaurants, travel and transport and tourism service agencies.
Assistance to Entertainment Industry:

KSFC provides financial assistance for the construction/purchase of cinema
halls and multiplexes, production of short TV serials and feature films/filmed a within Karnataka. Maximum financial assistance is up to 70% of the cost of the proposed fixed assets in the case of cinema halls and multiplexes and 50% of the total production and postproduction cost in the case of features films, TV serial and software for visual media.
Procedure for availing Financial Assistance:

Entrepreneurial guidance (EG) section headed by the Assistant General
Manager at the head office and branch managers will guide the entrepreneurs on various schemes, loan facilities available etc.
Project clearance committee :

A brief project profile along with supporting papers/documents will have to be given by the promoters, which will be scrutinized by EG (Entrepreneur Guidance) department as the case may be. The proposal will be placed before the Project Clearance Committee (PCC) chaired by the Managing Director at Head Office and Zonal Managers/Branch Managers at Branches. Details are to given as per the checklist. The promoters are also required to give bio-data and net wroth details as per the format. On receipt of the project profile and other detail, the main promoters are called for discussion before the PCC. After discussions, if the project is found support worthy, loan application form is issued on the spot (a set of three applications). The duly filled in applications have to be submitted in duplicate along with other documents, as per the checklist along with applicable processing fee.
40
Processing fee & other fees :
The following are the processing fee structure prevailing at present: Application processing fee: % of the loan amount. Up-front fee: SSI and others: % of the loan amount. Medium scale industries: 1% of the loan amount. The up-front loan fee will have to be paid the time of legal documentation or before availing the first disbursement of the loan amount. The application processing fee and up-front fee are non refundable. However, in case the loan application is rejected, refund up to maximum of 75% of loan processing fees paid is allowed on a case to case basis after deducting handling charges.
Legal fee:
In addition to the above, documentation fee for legal scrutiny of the title deeds, execution of hypothecation and mortgage deed etc. at 0.1% of loan amount is being charged.
Promoters contribution:
The promoters contribution varies between 12.5% and 25% depending on the location of the project, category, line of activity etc.
Debt equity ratio (DER):
(i)
For loans up to Rs.10 lakhs (ii) For loans above 10 lakhs
3:1 2:1
41

The corporation adopts the norms of promoters contribution and debt equity ratio as per the guidance issued by the SIDBI from time to time.
Debit services coverage ratio (DSCR):

The repayment period of loan is fixed by the corporation with due regard to the cash generation and profitability of the project. For this purpose, average DSCR ranging between 1.5:1 and 2: 1 is accepted as reasonable. The DCSR indicates the ability of the project to services to services the debts during the currency of the loans.
Repayment of the loan:

The repayment of the term loan varies between 5 to 7 years with a moratorium of 1 to 2 years depending on the period of implementation. In respect of corporate loan the maximum repayment period is 30 months including six months moratorium.
Security:
1.
Primary Security:
The primary security for loan will be the assets financed i.e. land, building and
machinery. If working capital loan is provided the inventories in the form of raw materials, work in process and finished goods, besides; bill and book debts, are to be pledged/hypothecated.
2. Collateral Security:
All loans are to be backed by collaterals in the form of commercial or residential properties located in the state of Karnataka. Fixed deposits, NSCs (National Saving
42

Certificates), etc and residential properties of third parties to the corporation will be further charged. In case of corporate loan, in the absence of adequate security in the form of primary assets, collateral security to the extent of 100% of the loan amount is insisted in respect of existing units assisted by the corporation and in respect of other units collateral security will by 150% of the loan amount.
NOTE: The primary and collateral are to be by way of simple mortgage at jurisdictional
SRO (Sub Registrar Office).
Sanction and disbursement of loan:

After the proposal is cleared by the project clearance committee the EG department scrutinizes the application and the enclosures submitted, collects the processing fee and forwards the papers to the credits department. The credit department appraises the projects and places them memorandum of sanction before the appropriate authority for sanction approval. Branch offices also follow the similar procedure.
Legal scrutiny and documentation:

Legal officers in credit department at head office and in branch offices will take up the legal scrutiny of documents after the sanction of loan. They ensure acceptance of terms and conditions by promoters and complete legal documentation process. Thereafter, credit department at HO/ branch office monitors the projects implementation and disburse the funds based on the securities created and after ensuring that the promoters have brought in the stipulated equity/contribution to the project is completed and final disbursement is made. The above is the procedure in brief for availing financial assistance from the corporation.
43

For further clarification/ details promoters may contact the General Manager (credits) or Asst.General manager (EG) at the head offices or the branch managers of the nearest branch offices.
44
STRUCTURE:
The Human Resource Management Department called as Personnel Department, which is headed by Senior Manager and coming under General Manager of Administration. The manpower strength of the Corporation stood at 1,266 at the end of 31st March 2007 as against 1,281 at the end of 31st March 2006. out of them. 402 are class A employees 721 are class B employees 143 are class C employees
45

Class A employees consist of Executives, Directors, Deputy General Manager, Assistant General Manager, Senior Managers, Manager, Deputy Manager. Class B employees consists of Assistant Managers, Assistants, Stenographers, Typists and Clerks. Class C employees consist of Drivers, Daffedars, and peons etc. The Corporation have a unique combination of professionals on its pay rolls - C As, ICWAs, MBA, MCom, MA, MSc, MTech, LL.M., LL.B, BE etc. Thus, the diversity in its human resource is one of the great assets of the corporation.
RECRUITMENT AND INCENTIVES:

There is a separate cadre recruitment rule, which governs the appointment of both direct recruitment and promotions. There is also staff regulation and rules, which governs the conduct of the employees. In KSFC there are number of incentives given to the employees in the form of reimbursement of convenience & medical expenses and advances at concessional rates to employees such as house building advance, children education advance, Motor car advance, Consumer durable advance, etc. There is a cordial relationship between the management and employees. There are Officers Association, SC/ST employees union and Employees union which reddress the grievances of the employees.
46

KSFC has also introduced various schemes for the employees like Voluntary Retirement Scheme (VRS) where employees can opt for retirement voluntarily. The performance of the employees is to be assessed yearly. And separate confidential report of a particular employee will be obtained from the Section head/Department head. In appraisal the employees overall performance is assessed for the fitness of his/her promotion. There is a reservation to SC/ST category for recruitment and promotion. 8 in-house need based training programmes were conducted covering 221 employees during the year of 2006-07 79 employees were deputed to external training programmes during the year of 200607.
47
STRUCTURE:
The Accounting and Financial Management includes Finance and accounts department, Treasury department and Legal department. The Finance and Account department is responsible for maintaining various accounts, ledger, cashbook and other books of accounts, income tax filling of statutory returns and statements. The function of Treasury department is estimation of funds for lower possible cost. The basic function of
48

Legal department is to appraise the project legally which the entrepreneurs submit for getting the loan. These departments are headed by one Executive Director, Deputy General Manager of Controller, Senior Manager of Treasury and Assistant Manager of Legal.
SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY KSFC

1. As required by IDBI wide circular dated 26th April 1994. The corporation follows cash systems of accounting for recognition of income and expenditure. Further, all expenses including interest, which is accrued and fallen due, is accounted irrespective of its payment excepting for guaranteed dividend liability up to 19992000, which is accounted on receipt of subvention money from government of Karnataka and charged off in the year of profit. 2. Memorandum loan accounts are maintained on mercantile basis for the purpose of management information system and asset classification. 3. Provisions against Non-Performing Assets have been made as per applicable guidelines issued by IDBI and SIDBI.
4. Cheques are accounted on receipt basis. Consequential changes, if any, are effected in the books on the date of knowing their status
5. The corporation has taken a policy under Group Gratuity Scheme with Life Insurance Corporation of India for payment of gratuity to its employees and premium there of has been charged to profit and loss account.
49

6. The guidance note on accounting for lease issued by the Institute of Chartered Accountants of India (ICAI) has been adopted in respect of assets on lease and the lease equalization/terminal adjustment is provided on the basis of schedule of lease rentals due over the period of lease transactions carried out up to 31-3-2001. Accounting standard 19 issued by ICAI has been adopted I respect of assets given on lease and hire purchase after 01-04-2001. 7. The corporation has own Provident Fund Regulations and contributions to the fund is accounted for. 8. The income from bills discounting and DPG commission are accounted upfront. 9. The allocation logic adopted by the Corporation for repayment of loan made by the borrower is to first adjust towards other debits, thereafter to adjust interest dues and lastly the remaining amount towards repayment of principal. In case of one time settlement and appropriation of sale proceeds of assets taken over under sec29 of the State Financial Corporations act 1951, the allocation logic is to first adjust towards principal thereafter towards interest accounted under mercantile system till the year 1983, then towards other debits and lastly the balance, if any, towards interest due subsequent to 1983. 10. Sale consideration on the sale of assets offered as security to the corporation on deferred payment bases is accounted in the year of sale where the borrowers accounts were written off in earlier years, and in the other cases the income is accounted on actual receipt of deferred payment installment. 11. Appropriation of amounts received on account on One Time Settlement is made on approval by the D.R.C/Board.
50

12. In terms of R.B.I circular dated 4th may 2001 effective from 31-03-2001 Investments are classified as Available for sale and provisioning for net depreciation in the value of investments is made. 13.
a) Depreciation is provided on straight line method at the following rates:Depreciation Rate table:
1. Building 2. Furniture and Fixture 3. Fans and Electrical Fittings. Internal Telephone and Equipment 4. Motors cars, bicycles, computers and motor cycles 04% 10% 15% 20%
b) Fixed assets have been carried at historical cost less depreciation and include all lease assets acquire up to 31-03-2001. c) Depreciation on all the leased assets upto 31.03.2001 is provided on straightline method over the primary period of lease.
51
PROVISIONSRATE TABLE [Term Loans] w.e.f. 01-08-2005 RELATING TO INCOME TAXage) AND SUPER INTEREST ( Rates in %
SL NO Article I. CATEGORY OF BORROWERS EXISTING INTEREST NEW INTEREST RATE RATES [as per circular No. ED (F) 755] GROSS NET GROSS NET REBATE
I RATE OF INTEREST FOR GENERAL CATEGORIES OF BORROWERS 1 TERM LOAN [INCLUDING WCTL] OVER RS.50000/- UP TO RS.200000 /- TO SSIs , [INCLUDING TDMF & RTUF SCHEMES] AND RTOS a] General rate b] Under RSR c] NEF/MUN /SEMFEX [TL] 2 TERM LOAN [INCLUDING WCTL] OVER RS.200000/- AND UP TO RS.25,00,000/- TO SSIs , [INCLUDING TDMF & RTUF SCHEMES] AND RTOS a] General rate b] Under RSR c] NEF/MUN /SEMFEX [TL] 3 TERM LOAN [INCL.WCTL] OVER RS .25,00,000/- TO SSI s, [INCLUDING TDMF & RTUF SCHEMES] AND RTO S a] General rate b] Under RSR c] NEF/MUN/SEMFEX [TL] - [for Project Cost Rs.50 lakhs & below] II RATE OF INTEREST FOR NON-SSI & MSI CATEGORIES 1 TERM LOAN TO NON-SSI s, MSIs & AMARA SCHEME a] General rate b] Under RSR c] NEF/MUN/SEMFEX [TL] [ Excluding MSIs & Amara Scheme] 2 13.50 13.00 13.50 13.50 12.50 12.00 13.00 12.50 13.50 13.00 13.50 13.50 11.00 10.50 12.00 11.00 2.50 2.50 1.50 2.50 12.50 12.00 13.50 11.50 11.00 13.00 12.50 12.00 13.50 11.00 10.50 12.00 1.50 1.50 1.50 12.00 11.50 13.00 11.00 10.50 12.50 12.00 11.50 13.00 10.50 10.00 11.50 1.50 1.50 1.50 11.75 10.75 12.25 10.75 9.75 11.75 11.75 10.75 12.25 10.25 9.25 11.00 1.50 1.50 1.25
(a)
(b)
LOAN ASSISTNCE FOR COMMERCIAL COMPLEX [not eligible under NEF/MUN/RSR scheme]
II RATE OF INTEREST FOR OTHER CATEGORIES OF BORROWERS 1 Section I.2 LOANS SANCTIONED OUT OF CORPORATION'S OWN FUNDS SUCH AS BRIDGE LOAN AGAINST INVESTMENT SUBSIDY, FINANCING EXISTING ASSETS AND ENTERPRISES etc., 2 LOANS UNDER CORPORATE LOAN SCHEME LOANS UNDER CORPORATE LOAN SCHEME - AAA rated entrepreneurs/units - AA rated entrepreneurs/units - Others 14.00 13.00 14.00 12.00 2.00
12.50 13.00 13.50
12.50 12.50 12.50
12.50 13.00 13.50
12.00 12.00 12.00
0.50 1.00 1.50
52

For the purposes of the Income Tax act, 1961(43 of 194) the financial corporation shall be deemed to be a company within the meaning of that act and shall be liable to Income Tax and super tax accordingly on its income, profits and gains: Provided that any sum paid by the state government under the guarantee given in pursuance of (sec7 or sec8) shall not be treated as the income profits and gains of the financial corporation and any interest on debentures, (bonds or depreciation) paid by the financial corporation out of such sum shall not be treated as expenses incurred by it. Provided further that in the case of any shareholders such portion of a dividend as has been paid out of any such sum advanced by the state government shall be deemed to be income from interest on securities. (And the income tax shall be payable there on as if it were interest receivable on any security of a state government issued income tax free) within the meaning of Section 8 of that act.
Financial Appraisal
:-
The purpose of financial appraisal is to find out the financial viability of the project. The financial appraisal is to find out the finance the projects are concerned with the successful operation of unit. For this they should be convinced that the project generates enough cash surplus to meet all the contractual obligations. Further, institutions will have certain ratios like debt-equity ratio, debt service coverage ratio, etc against which they examine the project. Financial appraisal includes profitability estimates, cash flow estimates and projected balance sheet. They are inter-related and prepared on the basis of cost of the projects, source of finance and various assumptions of profitability estimates.
FINANCIAL RESULTS:
53

During the year under review, the corporation generated gross revenue of Rs.195.71 crore on cash basis as against Rs.210.16 crore in 2005-06. Working of the corporation for the year resulted in an operating profit of Rs.17.32 crore as against operating profit of Rs.8.56 crore in 2005-06.
HEAD OFFICE SANCTIONS:
AND
BRANCH
OFFICE
During the year, loan sanctioned by the head office amounted to Rs. 184.57 crore to 73 cases compared to the previous years sanctions of 100.27 crore to 65 cases. Loans sanctioned by the branch offices amounted to Rs. 239.96 crore to 1253 cases compared to Rs. 215.93 crore to 1096 cases in the previous year.
DISBURSEMENTS:
Disbursements made during the year touched Rs.310.39 crore as against Rs.199.86 crore disbursed during the year 2005-06. Cumulative disbursements reached Rs.6526.40 crore as on 31.03.2007.
RECOVERY:
The total recovery during the year stood at Rs.502.74 crore as compared to Rs.555.06 crore made in the previous year. Recovery in respect of loan was Rs.478.78 crore and Rs.1.38 crore in respect of Hire purchase, Rs.1.48 crore in respect of Leasing and Rs.21.10 crore in respect of financial services.
TREASURY ACTIVITY:
Treasury department headed by Senior Manager and coming under Deputy General Manager of Controller.
54

While the year 2005-06 was considered as a milestone year in restructuring high cost bond obligations of the Corporation. During the year under report utilization of Rs. 300.00 crore private placement bond proceeds was completed for swapping the earlier high cost bonds. During the year corporation availed a refinance of Rs.150.00 crore, while repaid the principal of amount Rs.212.00 crore to SIDBI, including a pre-payment of Rs 100.00 crore. The line of credit out standing of SIDBI, which was at Rs.937.69 crore as on 31.03.2006 came down to Rs 875.68 crore at 31.03.2007. The interest cost on account of line of credit also came down from Rs.90.73 crore for the year 2005-06 to Rs.78.49 crore for the year 2006-07. The corporation availed a rebate of Rs.2.92 crore from SIDBI, for the prompt payment of principal and interest installments. The interest cost on account of bonds reduced from 67.10 crore for the year 2005-06 to Rs.57.55 crore for the year 2006-07. The Corporation maintained its track record, since inception, of being prompt in meeting all its payment obligations i.e., to the SIDBI, the bondholders, fixed deposit holders and all other financiers.
ASSET RECONSTRUCTION:
The Asset reconstruction department at Head Office continued to tackle the chronic Non-Performing Assets. The action basically involved disposal of units under sec.29, follow up of miscellaneous cases filed against guarantors for decree, execution of decrees, recovery of dues from MR portfolio etc. During the year, assets of 30 units were sold involving a sale price of Rs. 427.73 lakh. One time settlement of dues was extended to 16 units involving a settlement amount of Rs. 925.00 lakh. The AR department also contributed amount of Rs. 150.00 lakh of interest recovery. The recovery from MR portfolio was Rs. 242.00 lakh, which also contributed to the income of the Corporation.
55
BALANCE SHEET AS ON 31 st MARCH 2006-07

(Rs.in.lakhs )
Sl. Particulars N o A Capital 1. 2. 3. 4. 5.

Liabilities:
Schedul e
and
As on As on 31-03-2007 31-03-2006
Share capital Loan pending conversation To Share capital Reserve fund and other resources Term borrowings Current liabilities and provisions
A B C D E
12467.55 917.69 425.00 164985.10 7816.77
12467.55 917.69 425.00 17808.83 12434.02
B
1. 2. 3. 4. 5. 6.
L Property Assets:
TOTA and
F G H I J
186612.11
203053.09
Cash and bank balances Investments (at cost) Loans and advances Fixed assets Current assets Profit and loss accounts
4817.07 369.91 105790.61 748.21 14741.07 60091.24
11563.87 456.86 106924.43 821.85 22970.16 60315.92
56
balance
AL
TOT
186612.11
203053.09
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31stMARCH, 2007 (Rs.in
lakhs) Particulars
Schedule As at 31-03-2007 As at 31-03-2006
INCOME: Interest income Other income
K L TOTAL
16721.70 2849.70 19571.40 14110.66 2856.76 827.89 80.72 355.81 18231.84 1339.56 _ 41.00 3.19
17394.87 3621.19 21016.06 16780.62 2581.67 758.22 174.57 155.81 20450.89 565.17 39.00
EXPENDITURE: Interest and Other Financial Expenses Personal Expenses Administrative expenses Depreciation Bad Debt Written Off Profit Before Tax Less: provision for fringe Benefit Tax Current year Previous year
M N O I TOTAL
57
Profit after Tax Less: Adjusted towards Dividend deficit Account Dividend provision Less: brought forward loss from Previous Year Surplus/Deficit carried to Balance Sheet Notes &Significant Accounting Policies forming part of Accounts
1295.37
247.05 823.64 -60315.92 -60091.24 P
526.17 526.17
-60315.92 -60315.92
OPERATIONS AT A GLANCE:
(Amount Rs. in crore)
Particulars Paid up capital at the year end Gross Sanctions: a. Number b. Amount Assistance to SSIs Disbursements Loan out standings Recoveries Percentage of NPA Income
Since 2004-05 2005-06 2006-07 inception up to 31.03.2007 97.8 4 1,24 4 242.87 131.79 240.34 1,504.8 3 97.8 4 1,16 1 316.20 165.00 199.86 1,342.2 8 97.8 4 1,58,030 1,32 6 424.53 178.53 310.39 1,320.7 1 8,168.38 4,286.37 6,526.40 58
Expenditure Operating Profit
582.17 51 217.95 217.16 7.76
555.06 46 210.16 204.50 8.56
502.74 33 195.71 182.31 17.32
59
STRUCTURE:
The Management Information System Department is headed by Assistant General Manager and coming under General Manager of Corporate Planning.
MANAGEMENT INFORMATION SYSTEMS (MIS)

The present reporting system is oriented primarily to statistics .A formal MIS covering profitability, liquidity, disbursement recoveries and costs is necessary for monitoring of performance by top management. We suggest the following regular reports as parts of MIS for top management.
60
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE 1. LIQUITIDTY: Eligible refinance for disbursement already madeweekly. Variance analysis of cash flow (month) actual v/s budget, reimbursements, recoveries, refinance, interest and experience.
2. PROFITABILITY: Segment wise profitability (quarterly) Branches wise profitability(half yearly)
3. PORT FOLIO ANALYSIS:

Distribution of loans by size quarterly. Recovery analysis-quarterly. Age wise analysis of areas-quarterly. Loan size wise arrears analysis-quarterly. Branch wise analysis of recovery and arrears. ABC analysis of arrears (To cover 75% of the arrears of interest and principal).
4.COST OF BORROWING QUARTERLY: 5. INTEREST ON LOANS- QUARTERLY: 6. SANCTIONED QUARTERLY: LOANS AWAITING DISBURSEMENT
In the design of a computerized system of accounting and statistics collection using concepts such as those of relation database. Extreme care is necessary describe loans given/taken as comprehensively as possible. In this, it is better to as on the side of caution rather than assisted units functioning in leased premises. This can be easily extracted from the database if it forms part of the original files on assisted units. The M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE 61

relevance of all the data/information available on an assisted unit may not always be apparent at the time of data collection /entry. But the inclusion of all possible information when building a file enables collation of data and reporting in complex cross classification and matrices at any time of future.
FUNCTIONS OF MIS IN KSFC: MIS generates weekly, monthly reports and submits it to the management for taking appropriate policy decisions for follow up of branches/operational departments. The information regarding sanctions, disbursement recovery, and interest recovery, performance of all 29 branches are given to the zonal offices later. In turn the MIS department collects information from these zonal offices. MIS department furnishes information to its board of directors at monthly intervals. MIS department furnishes information to SIDBI, government departments, industry and commerce, financial department etc. MIS department prepares operational statistics every year. MIS department organizes branch zonal managers meeting every quarterly, half yearly etc. MIS department helps in fixation of targets. MIS department prepares the annual corporate budget
62
STRUCURE:
This department has started from this year. In order to augment income generation, the corporation initiated several measures directed towards fee-based activities. As part of restructuring, fee based activities like stamp vending, marketing of Life and General Insurance products, marketing of UTI mutual fund products, etc have been taken up by this department. This department is headed by Deputy General Manager and which comes under Executive Director of Finance.
63
MARKETING ACTIVITIES OF KSFC:
MUTUAL FUND ACTIVITIES:

During the year of 2006-07 the Corporation entered into MoU (Memorandum of
Understanding) with UTI for marketing of its Mutual Fund products of UTI. Though this activity was started in the last quarter of 2006-07, mutual fund products of Rs. 138.49 lakh were marketed.
INSURANCE BUSINESS:
An MoU was signed with Life Insurance Corporation of India in March 2007 for marketing of LIC products. The Corporation insured assets in respect of 4,831 cases and mobilized a premium of Rs. 166.39 lakh.
MONITORING OF IPOs:
During the year, the Corporation took up the Issue Monitoring (Initial Public Offerings) assignments in respect of two companies and earned a revenue of Rs. 40.00 lakhs.
STAMP VENDING ACTIVITY:

The Corporation has submitted a proposal to the State Government seeking permission for taking up the Stamp Vending activity. The proposal is pending with the Government.
CUSTOMERS OF KSFC:
News line printers Private Ltd Reliance Engineers Ltd. Sky Top Builders Private Ltd Akka Mahadevi Agro Foods Private Ltd
64
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE Jai Auto Cables Private Ltd Ajantha Computarised Colour lab Anand Bhavan Properties Private Ltd Chandra Plaze Deepthi Electronics and Electro Optics Private Ltd Balaji Warehousing company Private Ltd Dev Kiran Paper Mills Private Ltd Diamond Plastics Arun Digi Audio Bharani Laboratories Private Ltd Captronics Private Ltd .
65
STRENGTHS OF KSFC:
Well qualified employees. Network touching the whole of Karnataka. Internal strength in financing small sectors. Well laid down policies and procedures. 66

Operating and surviving in a highly industrialized state. Attractive schemes. All financial services under one roof i.e., availability. The corporation has highly motivated employees. Flexible repayment period. Companys image, reputation, quality of service, information availability is the key to success in their performance level. Companys leadership, dedication and skill of workers, entrepreneurial orientation, flexibility and adaptability of changes in the work, ability to respond to changing conditions are strengthen their vision which influenced more on their performance level at higher rate.
WEAKNESS OF KSFC:
The corporation is not adopting harsh recovery measures and helping the clients during their difficult periods due to continued economic recession. A statutory corporation with lots of government control. Could not raise resources at low cost in the open market Net worth and borrowing powers are affected adversely. The corporation is heavily dependence on outsiders funds. No flexibility in interest rates / promoters margin / security norms, when compared to delegation given to Commercial Banks.
OPPORTUNITIES OF KSFC:
Infrastructural development is what the companies are asking can be financed to large extent.
67

Knowledge Process Outsourcing (KPO), Buzz word, business can be given importance and financed. If implement dedicated connectivity between all their branches which can reduce the processing time and increase their customer base. Growing population their lifestyle trends, level of education, provides an opportunities to innovate new products and services to serve them. Per capita income, the rate of growth of economy also provides an opportunity to extend the financial assistance at an increasing trend. Regulation in the competitive practices, Government controls and legislation regulating business also an opportunity to improve the business. Number of competitors is some what less which is an opportunity to increase the performance level.
THREATS OF KSFC:
Private Banks like ICICI, HDFC are aggressive in financing loans by reducing their processing time in their corporate financing. IDBI, SIDBI, Corporative banks are gearing up for term loan finance to SMEs.
FINDINGS AND SUGGESTION:
68
KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE FINDINGS:1) All the schemes that can be availed by the local entrepreneur are operated at branch level. 2) Prior to providing assistance to a new unit an intensive study is done on the technical feasibility and financial liability of the proposed project by appropriate expertise in the field. 3) The need for a guarantor/security for sanctioning a loan depends on the the proposed project. If the proposed project involves high risk and worthiness becomes vital. 4) KSFC has norms to decide the repayment period for a loan. Apart from this cash generation capacity of the proposed project is considered to fix up actual repayment period. 5) KSFC provides guidance to the borrowers, and supervise/monitor the progress of a project and follows up of loans. 6) A Borrower can avail loans under more than one scheme and can take additional loan before repaying the previous loan. But this depends upon the exiting loan transactions with the corporation. 7) In case of defaults in repayment of loan, KSFC follows the following steps to recover. First, reminder letters are sent to the defaulting customer requesting him/her to make the payment. nature of then the need
for security also increases. If the borrower is a regular customer, then his credit
69

In case of failure to get the response, Show cause notices are sent to the defaulting customer stating the consequences of non-payment. Then a compromising process will be carried on for arriving at an agreeable solution between the defaulting borrower and KSFC. If none of the above methods prove to be fruitful then the security provided by the borrower will be confiscated and the amount realized from that will be setoff against the amount due from him. The amount that is not realizable will be written off finally after exhausting all the available remedies under the law. 1) Normally, the lead-time between application of loans and sanctioning of loans is up to proposal received by the branch having been processed within a period of 3 months. In some rare cases they period taken has been up to 6 months. But the respondents have revealed that, the delay was on account of their inability to comply with the formalities and provide required documents. 2) The officers in charge of appraisal are found to face certain problems while discharging their functions, some of which are listed below: Lack of information about the net worth. Over-invoicing of the cost of plant and the machineries. Change in government policies. Genuineness of the legal documents. Diversions and miss-utilizations of Funds. Suppressions of material information about experience, past track record, relationship with bankers etc.. Extraneous pressure for sanction of assistance. Inclusion of persons with dubious reputation, dummy names, woman family members to get subsidy.
70

3) To over come the above problems and appraise the proposals effectively, KSFC has been taking a number of strategies: Constant review and up-gradation of systems and practices. Close co-ordination with allied Government agencies, banks and financial institutions. Through investigation into the applicants profile and confirmation of facts and claims. Objective analysis of different elements of the project. Periodical interaction with applicants bankers.
SUGGETIONS: On the basis of analysis and interpretation of data and finding, the following point is put forward for the effective working of various loan schemes and project appraisal followed. 1) KSFC plays an important role in the development of small-scale industries in Karnataka State. KSFC has to take steps to provide additional financial schemes concentrating more on the small-scale industries sector. 2) KSFC has to maintain quality clients so that it can maintain quality portfolio. The corporation should take measures to sanction financial assistance by taking less processing time to give better services and to retain good cliental base. 3) The appraisal department has to consider more parameters in the Area of technical analysis, financial analysis, and marketability of the product while sanctioning the financial assistance to the project.
71

4) KSFC has to keep continues contact with the clients, which will help the clients, which will help the corporation in quick disbursement and improves customer relationship. The corporation has to conduct meetings with the clients and try to solve the problems faced by the unit frequently. 5) The corporation should concentrate on recovery of over dues and bad debts so as to bring down the loan outstanding of the corporation. 6) Targets should be set to the recovery officers and special incentives should be provided to those officers who achieve their objective. 7) KSFC should conduct customer meeting once in every month and should discuss the actual problems faced by the unit. The corporation with the help of its expert team should solve the problem and this will ensure smooth functioning of the assisted unit and recovery of the loan will also be ensured. 8) The concentration of SSI units in and around Bangalore is more. Most of them are proprietary concerns and private limited companies. So KSFC has to add new schemes for providing financial assistance to SSI units by charging lesser rate of interest. This will attract new customers to KSFC. 9) The organization structure should be modified and surplus staff should be removed and should implement fully computerization, so that the overhead expenses should be reduced. 10) Frequent policy reviews regarding quantum of loan and terms of repayment could be in tune with the change in the economy and recessionary trend in the industry. 11) A higher target could be attempted for achievement in respect of all schemes. This will benefit more people and Institution. 72
CONCLUSION :
KSFC is the largest state owned term lending institution in Karnataka. But the changing economic scenario, financial sector reforms coupled with WTO provisions and declining interest rate regime has had adverse effect on KSFCs functioning particularly during 1999 to 2002 years. Both internal and external factors and market competition offered particularly by the banking sector have worsened the position of KSFC during the said period. To conclude, it is observed that KSFC is a very good financial institution that has different branches all over Karnataka with helping hand to the needy small-scale entrepreneurs. Further KSFC is also entering into marketing fee based activities such as insurance products, mutual funds, infrastructure development activities and other emerging fields where the financial assistance is needed.
73
BIBLIOGRAPHY:
ORGANIZATIONAL BEHAVIOR FINANCIAL MANAGEMENT NON-BANKING FINANCIAL COMPANIES Companys Reports: KSFC Circulars. KSFC Directors Report. KSFC Manual Report. Project Appraisal Manual. Annual Report of KSFC 2006-07 Operation Statistics 2006-07 Auditors Report. -Stephen Robbins -I.M.Pandey -Dr. J.C.Verma
Websites:
WWW.ksfc.kar.nic.in WWW.google.com www.financeindia.org
74
75

Karanataka State Financial Corporation1

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Karanataka State Financial Corporation1

Uploaded by

Copyright:

Available Formats

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

DEVELOPMENT BANK IN INDIA:

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

STATE FINANCIAL CORPORATION (SFCs)

FUNCTIONS: State Financial Corporations perform the following functions:

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

NUMBER OF STATE FINANCIAL CORPORATIONS:

1) 2) 3) 4) 5) 6) 7 8) 9) 10) 11) 12) 13) 14) 15) 16)

Karnataka State Financial Corporation

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

GOAL:OVERALL DEVELOPMENT OF SMALL SCALE AND MEDIUM SCALE INDUSTRIES

QUALITY POLICY:M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE 8

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE Note:

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

1) Bangalore Rural Zone 2) Mysore 3) Mangalore 4) Gulbarga

5) Belgaum 6) Davangere 7) Dharwad

SUPER A GRADE BRANCH OFFICES

1) Bangalore Rural 2) Belgaum 3) Dharwad 4) Mysore

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

1) Shimoga 3) Bijapur 4) Raichur 5) Bidar 6) Karwar

B GRADE BRANCH OFFICES:

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

SERVICE NETWORK IN KARNATAKA:

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

PEOPLE : The prime asset of KSFC

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

AWARDS AND RECOGNITION

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

The Government of Karnataka has consented and committed to fund simple

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

PARTICIPATION IN THE 5 TH INTERNATIONAL RICE TECH EXPO

WORKSHOP ON ACCESSS TO FINANCE FOR WOMEN ENTERPRENEURS:

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

Seminar on Development of Women Entrepreneurs in the State of Karnataka .

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE

SERVICES OFFERED BY KSFC

MERCHANT BANKING SERVICES:

MUTUAL FUND ACTIVITIES:

M.S.RAMAIAH COLLEGE OF ARTS, SCIENCE & COMMERCE, BANGLORE

KARANATAKA STATE FINANCIAL CORPORATION, BANGALORE